The number of visitors to Ireland is expected to increase by 3 per cent this year, despite the impact of the war in Iraq and the continuing threat of the SARS virus, Tourism Ireland has said.
The industry is facing into the summer season with "renewed optimism" for US bookings following the end of the war in Iraq, according to the all-Ireland tourist board. However, the SARS virus risk was damaging the long-haul market.
Bookings from the US fell sharply in the run-up to the war and had stopped entirely during the last month, but inquiries were "picking up", a spokeswoman for Tourism Ireland said.
"We are seeing a gradual increase in interest from North America, but due to the SARS outbreak, Canada and Australia have cooled considerably," she added.
The long-haul tourists account for just under 5 per cent of visitors to Ireland. Tourism Ireland plans to initiate a second promotion campaign in Australia, Canada and New Zealand in the hope of a market rebound if the SARS virus is controlled.
The organisation has pulled its advertising campaign in the US earlier this year, but the spokeswoman said plans to kick-start it were currently being finalised.
"Consumer confidence did dip, but new airline routes have opened up through Baltimore and Philadelphia, and we're optimistic that people will begin to travel again," she said.
The Irish tourism industry had been well prepared to deal with a difficult year and, while the coach tours sector had been badly hit, overall Tourism Ireland was expecting a 3 per cent increase in visitors this year.
The chief executive of the Irish Hotels Federation, Mr John Power, said such optimism was premature. "In the last 10 days we've seen a little bit of a pick-up, but that's been since Aer Lingus launched its 1,000 Welcomes campaign," he said.
The campaign offers promotional fares linked to special offers from Irish hotels.
"That's created a bit of interest, but anyone who would say we've turned a corner is looking at the situation through rose-tinted glasses. It's much too early to call," Mr Power said.
The early part of the summer season was going to be "very weak", he said. It was hoped that there would be some recovery towards the end of the summer. However, he cautioned that there were no indications of that at this time.